The All Pakistan Textile Mills Association (APTMA) has urged the government to announce Rs. 8,000 per 40kg (maund) as cotton support price for the upcoming season.
In a statement, APTMA said that at present wheat is being harvested in Punjab and the cotton sowing will commence within the next few days. This crucial window for capturing the maximum area for cotton should not be lost or delayed, the statement said.
The support price of Rs 8,000 per maund is based on an international New York future cotton price of Grade-III of $1.25 per lb. in line with the international price of December 2022 and is well below the currently prevailing market price of $1.45 per lb. (Rs 9,280 per maund of phutti).
Minimum Support Price (MSP) will increase the profit and confidence of farmers who have shifted to other crops. Last year, MSP was also announced, but the government was late in announcing the price when the sowing season had nearly ended, it said.
During the 2021/22 season cotton yield per acre increased by 33.5 percent from 433 kg/hectare to 652 kg/hectare as farmers took extra care due to the anticipated higher prices of cotton.
This year, the timely announcement of the MSP will not only increase the yields but also the total sown area and is likely to yield the expected increase of 5 million bales of cotton equivalent to a saving of $5 billion for the economy.
